-- $21.4 million in revenues for second quarter 2008
-- Net cash used in the quarter of $0.9 million
-- Cash, cash equivalents, short-term investments and restricted cash
amounted to $33.1 million at the end of the quarter
-- Revenue derived from over 90 WiMAX customers in the second quarter
2008
-- Increased WiMAX deployments in the US with new FCC approved products
-- WiMAX Network expansions in Middle East, Eastern Europe and Latin
America
-- WiMAX Forum® Wave II certification for Mobile WiMAX USB
Airspan Networks Inc. (
Key Figures
Second Qtr Second Qtr First Qtr
In $US thousands except for EPS 2008 2007 2008
---------- ---------- ----------
Total Revenue 21,391 22,073 17,159
---------- ---------- ----------
WiMAX Revenue 12,708 14,125 13,321
---------- ---------- ----------
Non-WiMAX Revenue 8,683 7,948 3,838
---------- ---------- ----------
Gross profit 6,744 1,850 5,236
---------- ---------- ----------
Operating Expenses 15,735 13,707 15,596
---------- ---------- ----------
Net Loss (8,820) (11,676) (10,052)
---------- ---------- ----------
Net loss per share (basic and diluted) $ (0.15) $ (0.29) $ (0.17)
---------- ---------- ----------
Weighted Average Common Shares
Outstanding (1) 58,682,735 40,820,968 58,599,702
---------- ---------- ----------
(1) Excludes shares of common stock issuable on exercise of stock options
and 21,630,856 shares of common stock issuable on conversion of the
Company's Series B preferred stock.
"We have registered a well executed quarter in a dynamic market
environment. Our fixed network business continues to be strong. We see
great potential across all regions for our products, winning new customers
and growing incumbent accounts. Our relationships with Fujitsu, Gilat, and
Nortel continue to grow revenues and new customers. In addition, our mobile
products are advancing rapidly evidenced by our successful mobile WiMAX
certification," commented Eric Stonestrom, Airspan's president and chief
executive officer.
"Commercial activity in the quarter included several expansion contracts in
the Middle East, Eastern Europe and Latin America. These contract
extensions underscore our customers' reliance on Airspan products to grow
their businesses. We are winning new contracts globally which highlights
our competitive product offerings in both emerging and fully developed
economies.
"We are increasingly confident as we move into the second half of the year.
The WiMAX market holds significant growth potential and while we will
continue to target operational efficiencies, we will also aggressively
pursue business opportunities, invest in our technology and marketing, and
continue to work with our strategic partners to grow our business," Mr.
Stonestrom continued.
Second Quarter Financial details
Total second quarter revenues decreased year over year by 3% to $21.4
million compared with $22.1 million in the second quarter of 2007. Compared
to the first quarter 2008 revenues of $17.2 million, second quarter
revenues increased 25%, driven by a significant increase in non-WiMAX
revenues, which amounted to $8.7 million in the quarter. WiMAX revenues
were down 5% at $12.7 million in the second quarter of 2008, compared to
$13.3 million in the first quarter 2008.
Gross margin was 32% compared to 8% recorded in the same quarter of 2007.
Total operating expenses for the second quarter of 2008 were $15.7 million,
a 15% increase over the same period last year. A restructuring charge of
$0.6 million was recorded in the quarter related to cost cutting
initiatives, compared to a credit of $0.5 million in the corresponding
second quarter of 2007.
Geographically, in the second quarter of 2008, approximately 35% of revenue
was derived from customers in Mexico, Latin America and the Caribbean, 24%
from customers in Europe, 21% from customers in Africa and the Middle East,
13% from customers in the United States and Canada and 7% from customers in
Asia.
Cash, cash equivalents, short-term investments, and restricted cash
amounted to $33.1 million compared to $34.0 million at March 30, 2008,
resulting in cash usage for the quarter of $0.9 million. Days Sales
Outstanding (DSOs) were 67 at the end of the second quarter, down
significantly from 110 at the end of 2007.
"We are very focused on growing our revenues and efficiently managing our
costs and cash resources. We are increasing our sales and marketing
activity around our award winning WiMAX products while reducing
expenditures in other non-core areas," commented David Brant, Airspan's
chief financial officer.
Outlook
"The business outlook in the second half looks improved from the recent
past as more operators utilize fixed WiMAX, and mobile WiMAX increases in
momentum. Given the current market perspectives, we anticipate that our
full year revenue will be in the range of $90 million and WiMAX will
continue to increase as a percentage of our customer wins and revenues,"
commented Mr. Stonestrom.
Conference Call
The Company has scheduled an investor conference call for 8:30 a.m., EDT
today. Please call the following dial-in number to participate in the
call: US toll-free number is (888) 443-9987; the international access
dial-in number is +1 (706) 634-0598. Please reference the Airspan Networks
quarterly conference call, Conference ID 55751459. A replay of the call
will be available approximately two hours following the live session
through September 6, 2008. The U.S. toll-free number for the replay is
(800) 642-1687; international dial-in number for the replay is +1 (706)
645-9291. Please use access code 55751459.
Investors may also register for the audio webcast of the conference call
under the 'financial calendar' tab of the Investor Relations section of the
Airspan Web site at http://www.visualwebcaster.com/event.asp?id=49900.
About Airspan Networks Inc.
Airspan is the industry's leading WiMAX pure player, ranked #1 for
IEEE802.16-2004 WiMAX revenue in 2007 and has now been selected for some of
the world's largest mobile WiMAX deployments. With direct sales offices
throughout Asia, EMEA and the Americas, a worldwide network of resellers
and agents, and partnership alliances with major OEMs, Airspan boasts over
100 commercial WiMAX deployments worldwide. www.airspan.com.
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than statements of
historical facts, including statements regarding our strategy, future
operations, financial position, future revenues, projected costs,
prospects, plans and objectives of management, may be deemed to be
forward-looking statements. The words "anticipates," "believes,"
"estimates," "expects," "intends," "may," "plans," "projects," "will,"
"would" and similar expressions or negative variations thereof are intended
to identify forward-looking statements, although not all forward-looking
statements contain these identifying words. We may not actually achieve
the plans, intentions or expectations disclosed in our forward-looking
statements and you should not place undue reliance on our forward-looking
statements. There are a number of important factors that could cause actual
results or events to differ materially from the plans, intentions and
expectations disclosed in the forward-looking statements we make. Investors
and others are therefore cautioned that a variety of factors, including
certain risks, may affect our business and cause actual results to differ
materially from those set forth in the forward-looking statements. The
Company is subject to the risks and uncertainties described in its filings
with the Securities and Exchange Commission, including its Annual Report on
Form 10-K for the year ended December 31, 2007 and Quarterly Reports on
Form 10-Q for 2008. You should read those factors as being applicable to
all related
forward-looking statements wherever they appear in this press release. We
do not assume any obligation to update any forward-looking statements.
Airspan Networks Inc.
Consolidated Statements of Operations
(in thousands except for share and per share data)
Quarter End Year-to-Date
--------------------------- ---------------------------
June 29, 2008 July 1, 2007 June 29, 2008 July 1, 2007
------------- ------------ ------------- ------------
(unaudited) (unaudited)
Revenue $ 21,391 $ 22,073 $ 38,550 $ 48,733
Cost of revenue (14,647) (20,223) (26,570) (38,631)
------------- ------------ ------------- ------------
Gross profit 6,744 1,850 11,980 10,102
------------- ------------ ------------- ------------
Operating
expenses:
Research and
development 6,738 5,844 13,674 11,387
Sales and
marketing 4,302 3,508 8,541 6,870
Bad debt
provision 426 723 473 955
General and
administrative 3,395 3,923 7,535 8,164
Amortization of
intangibles 234 234 468 468
Restructuring 640 (525) 640 (485)
------------- ------------ ------------- ------------
Total operating
expenses 15,735 13,707 31,331 27,359
------------- ------------ ------------- ------------
Loss from
operations (8,991) (11,857) (19,351) (17,257)
Interest income,
net 117 207 233 487
Other income, net 71 (28) 313 3
------------- ------------ ------------- ------------
Loss before
income taxes (8,803) (11,678) (18,805) (16,767)
Income tax
(provision)/
benefit (17) 2 (67) (37)
------------- ------------ ------------- ------------
Net loss $ (8,820) $ (11,676) $ (18,872) $ (16,804)
============= ============ ============= ============
Net loss per
share - basic
and diluted $ (0.15) $ (0.29) $ (0.32) $ (0.41)
Weighted average
shares
outstanding -
basic and
diluted 58,682,735 40,820,968 58,641,218 40,674,533
Airspan Networks Inc.
Consolidated Balance Sheets
(in thousands)
June 29, 2008 December 31, 2007
----------------- -----------------
Unaudited Audited
ASSETS
Current Assets
Cash and cash equivalents $ 25,710 $ 30,815
Restricted cash 544 393
Short-term investments 6,860 5,504
Accounts receivable, less allowance
for doubtful accounts 18,625 33,853
Inventory 13,351 16,720
Prepaid expenses and other current
assets 3,939 5,338
----------------- -----------------
Total Current Assets 69,029 92,623
Property, plant and equipment, net 5,316 5,895
Goodwill 11,633 10,231
Intangible assets, net 3,480 1,870
Other non-current assets -- 3,402
----------------- -----------------
Total Assets $ 89,458 $ 114,021
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 7,728 $ 11,938
Deferred revenue 2,858 5,125
Customer advances 781 892
Other accrued expenses 12,497 13,063
Short-term debt 7,500 7,500
----------------- -----------------
Total Current Liabilities 31,364 38,518
----------------- -----------------
Non Current Liabilities
Long-term debt 1,787 1,787
Accrued interest on long term debt 193 191
----------------- -----------------
Total Liabilities 33,344 40,496
----------------- -----------------
Stockholders’ Equity
Common stock 17 17
Note receivable - stockholder (87) (87)
Additional paid in capital 351,179 349,718
Accumulated deficit (294,995) (276,123)
----------------- -----------------
Total Stockholders’ Equity 56,114 73,525
----------------- -----------------
----------------- -----------------
Total Liabilities and Stockholders’
Equity $ 89,458 $ 114,021
================= =================
Contact Information: For Investor Relations and Media Inquiries, contact: David Brant Senior Vice President & Chief Financial Officer Airspan Networks Inc. Tel: +1 561 893-8650 Fax: +1 561 893-8681 Email: dbrant@airspan.com Charlotte Laurent-Ottomane Investor Relations Email: clottomane@airspan.com Tel. +561 395 4581